Bradys 2nd Auditing Test

Bradys 2nd Auditing Test - 2nd Auditing Test Your Name_...

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2 nd Auditing Test Your Name____________________________________________________________ Chpt 6 1. The objective of the ordinary audit of financial statements is the expression of an opinion on: a. the fairness of the financial statements. b. the accuracy of the financial statements. c. the accuracy of the annual report. d. the balance sheet and income statement. 2 If management insists on financial statement disclosures that the auditor finds unacceptable, the auditor can: Issue an adverse audit report Issue a qualified audit report a. b. c. d. Yes No Yes No Yes No No Yes . 3 The auditor’s best defense when material misstatements are not uncovered is to have conducted the audit: a. in accordance with auditing standards. b. as effectively as reasonably possible. c. in a timely manner. d. only after an adequate investigation of the management team. 4 In certifying their annual financial statements, the CEO and CFO of a public company certify that the financial statements comply with the requirements of: a. GAAP. b. the Sarbanes-Oxley Act. c. the Securities Exchange Act of 1934. d. GAAS. 5. The auditor has no responsibility to plan and perform the audit to obtain reasonable assurance that misstatements, whether caused by errors or fraud, that are not ________ are detected. a. important to the financial statements b. statistically significant to the financial statements c. material to the financial statements d. identified by the client Chapt 7
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6 Audit procedures may be performed: Prior to the fiscal year-end of the client Subsequent to the fiscal year-end of the client a. b. c. d. Yes No Yes No Yes No No Yes 7. Which of the following is not a characteristic of the reliability of evidence? a. Effectiveness of client internal controls. b. Education of auditor. c. Independence of information provider. d. Timeliness. 8. Appropriateness of evidence is a measure of the: a. quantity of evidence. b. quality of evidence. c. sufficiency of evidence. d. meaning of evidence. 9 Two determinants of the persuasiveness of evidence are: a. competence and sufficiency. b. relevance and reliability. c. appropriateness and sufficiency. d. independence and effectiveness. 10. When auditors use documents to support recorded transactions, the process is often called: a. inquiry. b. confirmation. c. vouching. d. physical examination. 11. Which of the following is not a purpose of analytical procedures? a. Understand the client’s industry. b. Assess the client’s ability to continue as a going concern. c. Evaluate internal controls.
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d. Reduce detailed audit tests. 12 Which of the following is the most objective type of evidence? a. A letter written by the client’s attorney discussing the likely outcome of outstanding lawsuits. b.
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This note was uploaded on 01/11/2012 for the course ECON 100A 100A taught by Professor Clark during the Spring '11 term at UC Davis.

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Bradys 2nd Auditing Test - 2nd Auditing Test Your Name_...

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